Barnet Pension Fund has approved an updated investment strategy, signalling a commitment to its long-term financial health and the security of member benefits. The strategy aims to achieve a long-term return of at least 6.8% per annum and maintain a funding level above 100% with at least a 75% likelihood over a 20-year horizon.
The Barnet Pension Fund Committee met on Monday, 14 September 2026, to endorse the revised strategy. This update aligns with new regulatory requirements introduced by the Pension Schemes Act 2026 and associated regulations, which came into force on 30 June 2026. The updated draft Investment Strategy Statement (ISS) has been reviewed against the latest statutory guidance and reflects the new LGPS investment governance and asset pooling framework.
While the core investment strategy, strategic asset allocation, and high-level investment objectives remain largely unchanged since their approval in March 2026, the updated document incorporates the final regulatory framework and pooling requirements. The fund's strategic asset allocation includes allocations to Listed Equities (24.0%), Private Equity (5.0%), Private Credit (9.5%), Property/Real Estate (5.5%), Infrastructure (7.5%), Other Alternatives (5.0%), Credit (39.5%), UK Government Bonds (4.0%), and Investment Cash (0%).
The current funding level of the Barnet Pension Fund at the 31 March 2025 actuarial valuation was 130%, corresponding to a surplus of £396 million. The objective is to maintain this funding level above 100% with at least a 75% likelihood over a 20-year horizon.
Barnet Pension Fund is part of the London LGPS CIV Ltd (LCIV) asset pool, which is responsible for implementing the fund's investment strategy. The Investment Management Agreement between the London Borough of Barnet and London CIV was signed in May 2026, formally transferring the management of the Fund's assets to the pool in line with new LGPS regulations. London CIV is responsible for implementing the Fund's investment strategy, including manager selection, portfolio construction, and rebalancing within agreed tolerance ranges. The fund's strategic asset allocation remains the same, but its implementation is now managed by London CIV.
The strategy also focuses on ensuring sufficient liquidity for pension payments. Furthermore, there is a commitment to investing up to 3% of fund assets in local investments that benefit the Barnet area and the wider London CIV asset pool. The fund defines local investment as investment made within, or for the benefit of, the geographical area covered by the London CIV asset pool, including the London Borough of Barnet. This target allocation is a long-term objective and is expected to be implemented only where suitable investment opportunities exist. London CIV will be responsible for identifying, assessing, and implementing suitable local investment opportunities, while the Barnet Pension Fund will retain responsibility for determining the Fund's local investment objectives and target allocation.
The committee approved the updated draft ISS for consultation during the autumn of 2026. Following consideration of any feedback received, the final ISS will be presented for approval and publication after the consultation process has concluded, with a target for the final ISS to be presented for approval and publication in January 2027. The Executive Director of Resources is delegated authority to finalise and publish the statement following this process.
For more details on the committee's discussions, refer to the Public reports pack and the Agenda frontsheet. The Minutes of the Previous Meeting are also available.
